No Borders acquires 49% of ISP Frontcom

Nevada-based company No Borders plans to acquire a 49% interest in Mexican ISP Frontcom, which is in the process of applying for a long distance carrier license, No Borders said in a statement. The deal is part of an agreement signed by No Borders to purchase from Jacobo Melcer 100% of the assets Melcer purchased from Frontcom.com, the entity he co-founded. The acquisition is scheduled to close on or before May 31, 2005. These assets include a Softswitch as the core component of telecommunications infrastructure, which allows for direct interconnectivity with telecom carriers. The deployment of these assets eliminates the need to acquire minutes from resellers, thus reducing the company's per minute long distance costs. The infrastructure will significantly reduce No Borders' projected operating costs since long distance calls to Mexico from merchant sites will be made without any per minute cost, by connecting VoIP gateways at the No Borders' merchant sites to the new division's Softswitch.